As there are many Taiwanese and overseas Chinese own residential rental properties in the Big Apple (New York), it would appropriate for us to inform the Taiwanese and Chinese speaking landowners about the effect of the recent approved rent-stabilization law of New York.

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The New York Governor Andrew Cuomo signed off on the NY State Senate Bill S6458, the “Housing Stability and Tenant Protection Act of 2019” (TPA), on June 14 2019, a package of rent laws which represent a sea change from the laws that have governed landlord-tenant relations in New York City for decades.

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Here are some of the major changes that would have an immediate impact on the operation of the landlords of residential rental building:

1. Within14 days after the tenant has vacated the premises, the landlord shall return any remaining portion of the deposit to the tenant.

2. Regarding rent demand, the preliminary demand setting forth the charges and fees due to the landlord will now require 14 days’ notice rather than the previous three days’ notice.

3. A requirement of 120 days’ written notice served on the tenant if there is a 5% or more increase when a renewal is offered.

4. Regarding eviction, the Marshal’s Notice, which advises the tenant of the date of the eviction, has been increased from 6 days to 14 days. This permission also increases the court’s discretion to vacate judgments and restore tenants to possession.

5. Landlords are limited to a fee not to exceed $20 for background and credit checks.

6. Places limits on late fees, which are capped at either 5% of the monthly rent or a maximum of $50, whichever is less.

7. Prohibits landlords, including cooperatives, from utilizing court records or past or pending landlord-tenant litigation as a basis for refusing to rent or offer a lease to an applicant. This means that it would be improper, as part of the cooperative’s application package, to ask for or conduct a tenant history or request landlord letters.

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As we can see from the above changes, the TPA substantially alters nearly every aspect of building management in New York, from rent deposit to the notices in eviction proceedings. However, the Act is currently under attack after a group of real-estate trade groups and landlords sued to overturn regulations that cover more than 1 million apartments.

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Although the TPA is currently under attack, the rental property owners should still immediately adjust their practices to be in compliance with the new law, including acquiring the additional contact information from tenants, including email addresses, forwarding addresses when they move, and a system to properly send the notice and the security deposit within those 14 days.

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The HSTPA has been implemented since October. If you are currently living in Taiwan and owns rental properties in New York, please contact Formosan Brother Attorney at Law, we are happy to assist you in remain in compliance with the Housing Stability and Tenant Protection Act of 2019.

(Author: Pei-Yuan Wei Legal Consultant)

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